Isaac Tallam Market System Expert Venue: Radisson Blue Hotel, Nairobi

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Presentation transcript:

3rd Annual Regional Network of Agricultural Policy Research Institutes (ReNAPRI) Stakeholders Isaac Tallam Market System Expert Venue: Radisson Blue Hotel, Nairobi Date: 10th November, 2016

Who we are UK govt. funded £35million 5 year trade enhancement & promotion programme focused on staple food crops Targeted interventions in: storage, inputs & service markets, information & coordination mechanisms, and policy & regulation Promotes partnerships & private sector led solutions ….. ….. “To unlock trade across borders and across the region to get more food to more people.” How we work with ReNAPRI… ReNAPRI is a FoodTrade ESA programme partner Country-specific and regional analysis & studies on issues relevant to the development of the regional staple food markets Knowledge management

Our investment tools Development Challenge Fund (CF) Fund (DF) Total (to date) obligated amount under CF: GBP 9,512,147 Development Fund (DF) Total (to date) obligated amount under DF: GBP13,802,800 Some grantees: Joseph Initiative Ltd. (Ug) Pee Pee Tanzania Ltd. (Tz) Classic Foods Ltd. (Ke) Seba Foods Ltd. (Zm) Afritec Seeds Ltd. (Ke)……and many more Some grantees: The Eastern Africa Grain Council The UN WFP ACTESA Farm Africa Kilimo Trust

Trade for food security Investments Output Outcome Impact Transactional challenges: √ Improved Trade Support Systems (Aggregation; Market linkages) √ Improved Input Markets Increased soybean production Systemic challenges: √ Influencing key constraints in structured trade systems √ Improved regional trade policy & regulatory frameworks √ Removing barriers to trade More Staples traded and more people benefit from participation in national and cross-border value chains. Improved functioning of national and regional staple food market systems FTESA CF FTESA DF

Why Structured Trading Systems? Transparency, Efficiency & Reliability Transaction costs reduced Guarantee: quality and quantity Win-win: farmers, traders, processors Market liquidity & investments Efficient staple food market systems

GSoko partnership objectives Increased certification of warehouses; Increased utilization of EA standards; Automate the operations of certified warehouses; Strengthen producer aggregation centers and incorporate smallholders in structured trade; Link the warehouses to an electronic trading platform involving -traders, banks, suppliers and agro-dealers and; Provide efficient and reliable trade information that informs buyers and sellers on spot market conditions regionally.

How it works

The GSoko process

Current GSoko status 52 warehouses certified (UG-17, TZ-18* KE-17); 139 VACs established within the warehouse catchment area; 38 warehouses (12-Ke,11-Ug & 15-Tz) already installed with GSoko system; 50,360 MT deposited and traded through GSoko warehouses (off-site) As at the end of October 2016, the Gsoko platform had traded 1,120MT of commodity valued at USD 294,100.00 successfully covering three trading sessions

Risks Export bans - promote national vs. regional focus. The grain export ban in Tanzania mostly affecting rice and maize is impacting project beneficiaries; knock-on effect to be felt by small holder farmers and affects the Gsoko system. Climate change. Extreme weather conditions and their impact on food security effect production levels; this underscores the need for structured trade across regions. Location. Some VACs are located outside the warehouses catchment area. Therefore, they can’t access the GSoko services. ICT. Poor internet connectivity-reduced utilisation of GSoko system - low volumes recorded on the system. Most of the warehouses identified do not meet the EAGC warehouse standards. Numerous changes on the GSoko system occasioned by the changes proposed by the GSoko partners - sellers, buyers, banks among others. Need to get more grain volumes into GSoko warehouses.

www.foodtradeesa.com